XTEK Ltd (ASX:XTE) has received a purchase order from Australia’s Department of Defence for spare parts to support ongoing operations of Small Unmanned Aerial Systems (SUAS) used by Defence under the Land 129-4A Support Contract.
This contract is valued at A$1.9 million and the company has agreed to deliver the spare parts in mid-March quarter in 2022 when it will be recognised as FY22 revenue.
XTEK provides tailored technology solutions to the government, law enforcement, military, space and commercial sectors.
Ongoing support contract
The company’s CEO Scott Basham said: “This follow-on order for almost A$2 million of SUAS spare parts to XTEK from the Commonwealth, is part of the ongoing Support Contract we have with Defence for the Land 129 Phase 4A project.
“XTEK is the prime Systems Integrator for this project and we have been supporting Defence for the last five years, providing high-end technical maintenance, support and repairs to the SUAS fleet, as well as other important Defence equipment fleets such as EOD robots.”
“These spare parts, which will be held in our state-of-the-art SUAS repair facility in Canberra, will be used to keep important operational UAV capabilities in the air for Defence.”
Shares have been as much as 3% higher to A$0.37 intra-day.
XTEK is focused on developing and commercialising its proprietary technologies by leveraging its established distribution network.
These technologies include XTclaveTM which produced ballistic products and advanced composite solutions, and XTatlasTM real-time contextual video, which provides unique solutions for western military forces and other government agencies.
In addition, the supply and maintenance of Small Unmanned Aerial Systems (SUAS) remains a focus.